“Above and beyond the economic ups and downs, research shows that the Chinese market is set to grow. There are still good prospects in China”, claims Allan Sichel, confident about the market's potential.“Above and beyond the economic ups and downs, research shows that the Chinese market is set to grow. There are still good prospects in China”, claims Allan Sichel, confident about the market's potential. - Photo credit : Maison Sichel
In a trade war, is one country’s loss another one’s gain? After suffering for the past year from the infamous ‘Trump taxes’, which have benefitted their Italian rivals in the US, some French exporters have been interested to see a reversal of the situation for Australian wines in China. But trade wars are never good news, warns wine merchant Allan Sichel, vice-chairman of the Bordeaux wine market council CIVB.
The Australian wine industry has had total exemption from customs duties in China since 2019 but has now been hit with anti-dumping duties. Do the taxes give French wines in general and Bordeaux in particular a competitive edge?
Allan Sichel: I would put it into perspective. We know that China has huge economic significance for Australia, and not just for its wines. The situation is not going to last long. There will be a move to restore relations, which were not that bad between the two countries not that long ago, when they signed a free trade agreement.
So French wines can’t rely on the geopolitical crisis to regain lost market shares?
I don't see this situation as a big opportunity for Bordeaux and French wines. Some may be able to take advantage of the temporary vacuum left by Australian wines, but the taxes will destabilise the market. Australian wines not sold in China will be sold elsewhere. Penfolds has announced it will be redeploying volumes to other markets which will increase tensions and competition there. These wines are not going to be sold in the Australian domestic market and it may lead to a drop in prices in a bid to offload inventories. The French wine industry should not rejoice over Chinese import taxes on Australian wines. They are detrimental for everyone.
編輯：Frida Xu
